The Impact of Technological Complementarity on Post-Acquisition Innovation Performance: the Moderating Effect of National Cultural Distance

Abstract

This study investigated how technology complementarity influences the post-acquisition innovation performance in cross-border technological acquisitions. It is argued that acquiring complementary technology will have a positive impact on the acquirers post-acquisition innovation performance. Furthermore, as it is suggested that knowledge transfer and integration is influenced by cultural distance, this study also examined how national cultural distance moderates the relationship between technology complementarity and innovation performance. The results show that national cultural distance weakens the positive relationship between complementary technology and innovation performance, using data of 191 cross-border technology acquisitions from 1985 to 1995. The study suggests that managers should take technology complementarity and cultural distance into consideration when implementing acquisitions.